THE number of securities that were dematerialised on the Chengetedzai Securities Depository (CSD) hit ZW$5 trillion at the end of August 2023, with the average demat ratio standing at 50,14%, businessdigest reports.
This accounted for 54,37% of the total market capitalisation for dematerialised shares on the Zimbabwe Stock Exchange.
Dematerialisation is the process of converting physical share certificates into electronic form.
Over the years, the ratio has been hovering around 50% as people held on to their physical shares in the absence of laws that compel them to convert.
In its trading update for the month ended August 31 2023, CSD said average dematerialisation penetration ratio (demat ratio) across all counters was 50,14%.
“Dematerialised securities registered on the Chengetedzai Depository Company Limited (CDC) CSD accounted for 54,37% of the total market capitalisation for dematerialised shares on the Zimbabwe Stock Exchange, and their total value was ZW$5,287 trillion as of 31 August 2023,” CDC said.
During the period, OK Zimbabwe, Proplastics, Zimre Holdings and Meikles led the dematerialisation pack to sit at 99%, followed by Star Africa at 97%.
Powerspeed was the lowest at 56%.
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During the period, corporates and pension funds held the most significant value on the CSD accounting for 34,58% and 27,82%, respectively.
The total turnover for trades for the month under review settling through CDC CSD system was ZW$37,701 billion.
Equities market capitalisation on the ZSE declined by 5,97% closing the month at ZW$9,723 trillion.
“A total of 181 new accounts were opened bringing the total accounts opened this year to 1 954. As at August 31 2023, the cumulative number of accounts opened on the CSD stood at 45 938. Local investors continue to dominate, accounting for 95,12% of accounts opened as at 31 August 2023,” CDC said.
The company added that individuals held the largest number and proportion of accounts on the CSD during the period.
The firm will continue with efforts to identify owners of unclaimed shares.
Cumulative number of trades processed in 2023 closed at US$37 884.
The exchange rate as at August 31, 2023: US$1:ZW$4 840,6.